Good afternoon! President Trump’s two-day Beijing summit with Chinese President Xi Jinping focused on trade, energy, and Iran, with Democratic attempts to pass war powers resolutions on the Iran conflict failing in the House and Senate for the third and seventh times, respectively. On Capitol Hill, the Senate parliamentarian removed several provisions from Republicans’ proposed budget reconciliation legislation, including funding for immigration enforcement and the White House ballroom security project. The Senate also confirmed Kevin Warsh as Federal Reserve chairman ahead of Jerome Powell’s departure. Senate appropriators set a tentative June 4th start for Fiscal Year (FY) 2027 appropriations markups, while House panels advanced Commerce-Justice-Science and Energy and Water Development spending bills. The House plans to vote next week on an amended version of the Senate’s housing package.
WHITE HOUSE
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President Trump concluded a two-day visit to Beijing on Friday, meeting with President Xi Jinping to discuss Iran, Taiwan, and trade. Chinese state media reported that Xi announced a three-year “strategic stability” framework after the summit. President Trump told Fox News that China agreed to purchase U.S. oil and 200 Boeing aircraft. Both countries set up new boards for economic and AI oversight. President Trump invited Xi to the White House on September 24, which Beijing confirmed.
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During the Beijing meeting, President Xi told President Trump that China will not supply military equipment to Iran and offered to help reopen the Strait of Hormuz, according to Trump in a Fox News interview. The White House noted that both sides agree the strait must remain open for global energy shipping. Xi opposed militarizing or imposing tolls on the waterway and expressed interest in buying more U.S. oil to reduce China’s reliance on the corridor. China currently imports about 12 percent of its oil from Iran and receives nearly 90 percent of Iran’s oil exports. Secretary of State Marco Rubio said the President did not request Chinese assistance in the conflict, but the administration hopes to encourage Beijing to take a more active role in pressuring Iran. Both governments also agreed that Iran cannot possess a nuclear weapon.
- President Trump announced Tuesday that FDA Commissioner Marty Makary will step down following internal administration pressure. Deputy Commissioner Kyle Diamantas will serve as acting commissioner. The FDA still lacks permanent directors for its drug and biologics evaluation centers and has lost about 20 percent of its staff since last year, following the Department of Government Efficiency’s review.
SENATE
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Senate staff from both parties met Friday with Parliamentarian Elizabeth MacDonough to discuss challenges to the Judiciary Committee’s reconciliation text, which includes nearly $1 billion for Secret Service upgrades related to the White House ballroom project. This follows MacDonough’s ruling against immigration provisions in the Homeland Security title, putting about $72 billion in enforcement funding at risk. Republicans are expected to revise or remove the flagged items before the Homeland Security Committee’s review next week.
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Admiral Brad Cooper, chief of U.S. Central Command, testified Thursday before the Senate Armed Services Committee that Operation Epic Fury has significantly weakened Iran’s military capabilities. He reported a 90 percent reduction in Iran’s drone, missile, and naval industrial base and predicted its navy “will not begin to rebuild for five to ten years.” The hearing, originally scheduled as an annual budget review, was the Senators’ first public opportunity to question Cooper since the war began 75 days ago.
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Senate appropriators plan to begin FY 2027 markups on June 4, starting with the Agriculture, Commerce-Justice-Science, and Legislative Branch bills. Appropriations Committee Chair Susan Collins (R-ME) has issued preliminary allocations to some subcommittees, but no overall topline spending agreement has been reached.
- The Senate confirmed Kevin Warsh as Federal Reserve Chairman on Wednesday by a 54-45 vote ahead of Jerome Powell’s term expiration today. Chairman Warsh will lead his first Federal Reserve meeting on June 16-17.
HOUSE
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The House voted 212-212 on Thursday, defeating Rep. Josh Gottheimer’s (D-NJ) resolution to withdraw U.S. forces from hostilities with Iran. This is the third such measure to fail and the first since the conflict passed the 60-day mark. The vote followed the Senate’s defeat of a similar resolution. The Trump administration maintains that the War Powers Resolution’s 60-day deadline, which expired May 1, no longer applies due to the April 7 ceasefire.
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On Friday, House Appropriations Energy and Water Development Subcommittee approved by voice vote a $62.2 billion draft FY 2027 spending bill that reduces funding for renewable and clean-energy research while increasing defense-related nuclear programs. This bill allocates $1.85 billion to the Critical Minerals and Energy Innovation office, which is a $1.25 billion reduction from current levels. Advanced Research Projects Agency-Energy (ARPA-E) funding is reduced by $50 million to $300 million. Nondefense programs face a 6 percent cut, while defense-related Energy Department programs receive a 2 percent increase under the proposed bill.
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The House Appropriations Committee approved an $80 billion FY 2027 Commerce-Justice-Science spending bill Wednesday by a 32-28 vote, representing a 1.5 percent reduction from FY 2026 enacted levels. This bill increases the Department of Justice’s funding by $1.6 billion to $38.6 billion. Other agencies listed in this bill include a 7.3 percent increase for the Federal Bureau of Investigation (FBI) to $11.4 billion, a 9.4 percent increase for the Drug Enforcement Administration (DEA), and an 18 percent reduction for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The Commerce Department’s overall funding would be reduced by 8.8 percent to $10.2 billion, and the National Science Foundation by 20 percent to $7 billion. The committee also adopted a bipartisan amendment, 32-25, prohibiting law enforcement and intelligence agencies from purchasing Americans’ data from commercial brokers.
- GOP leadership confirmed Wednesday that the House plans to vote next week on an amended version of the Senate-passed 21st Century ROAD to Housing Act following a month-long dispute over the affordable housing package. House Financial Services Chairman French Hill (R-AR) has been negotiating revisions with Democrats and committee Republicans. These changes address Senate provisions that ban institutional investors from purchasing homes and require investors to sell build-to-rent units to individual buyers after 7 years. The Senate passed the measure 89-10 in March with broad bipartisan support. President Trump has called for the swift passage of the Senate version, but House Republicans intend to amend it and return it to the Senate. The Senate Majority Leader said Wednesday he could not yet confirm whether the chamber would consider an amended House bill.
